Gold Price Weekly Outlook: 24K Eyes Rs 1.6 Lakh/10 Gm, Silver Surges Too | Gold Rate Rally Ahead, May 24-31?

Gold Price Weekly Outlook: The prices of 24 karat, 22 karat, and 18 karat gold in India witnessed a sharp surge during the week. The rally in domestic gold rates came as the Indian Rupee hit a record low amid concerns over a widening current account deficit, driven by rising crude oil prices and movements in the US dollar.

In contrast, international gold prices ended the week lower as market expectations adjusted to the possibility of a US interest rate hike later this year. As investors prepare for the coming week, here are all the details about factors that may impact gold price movement in the coming week, ie between May 25- May 31.

Gold Rate in India

The price of 24 karat gold in India stood near Rs 1.6 lakh per 10 gram on Sunday, May 24. The 24 karat gold rate in India today stood at Rs 15,906 per gram on Sunday, May 24. The rate of 22 karat gold in India stood at Rs 14,580 per gram today. Likewise, the rate of 18 karat gold in India increased to Rs 11,929 per gram on May 24.

Silver Rate in India Today

The price of silver in India remained unchanged on Sunday. Silver rate today stood at Rs 285 per gram, as per Goodreturns data on Sunday, and at Rs 2,85,000 per kilogram.

Gold, Silver Price Outlook For Next Week

Gold price is likely to remain volatile during the week as factors like the Indian Rupee movement, crude oil prices, geopolitical tensions, and central bank buying of gold may impact the investors sentiment.

International gold rate is trading close to $ 4,500 per ounce zone after a sharp run up. Multiple factors are expected to impact gold price movement next week, including rising US 10-year yields, and concerns of rising fiscal, inflation and geopolitical risks, highlights Bhavik Joshi, Business Head, INVasset PMS.

"With the Fed funds range still at 3.50-3.75%, US 10-year yields above 4.5%, and the dollar index near 99, markets are balancing two opposing forces: high real yields on one side and rising fiscal, inflation and geopolitical risks on the other. That is why gold has not behaved like a simple rate-cut trade," stated Joshi.

Gold Price To Remain Volatile Next Week: What's In It For Indian Investors?

"For Indian investors, the story is even more layered. Gold in rupee terms can behave very differently from gold in dollar terms. USD/INR near 95-96 means that even if international gold consolidates, domestic prices may remain elevated because rupee depreciation cushions the fall. On top of that, India's recent increase in gold import tariff from 6% to 15% has widened the policy cost embedded in local prices. Domestic premiums or discounts can move depending on demand, liquidity and inventory conditions, but currency and duty together have clearly made Indian gold a different asset experience from global gold," Joshi added.